Home Loan Check:
Your First Home Budget

An example budget

A sample for a typical first-time buyer. Answer the questions above and this becomes your own budget and plan.

Home budget estimate · Not a loan offerA price that fits your budget$213,000–$332,000Comfortable up to $213,000; a stretch up to $332,000. At $250,000 with FHA, 3.5% down: about $2,325 a month and $16,250 to close. A stretchWorked out by our calculator from the national average 30-year rate (7.11%, Freddie Mac via FRED), typical Illinois taxes, insurance and costs. Lenders set real rates and decide who qualifies.

How your $2,325 monthly payment is built

Lenders call the first four pieces PITI: principal, interest, taxes and insurance. This is for FHA, 3.5% down at $250,000.

Principal and interest$1,610 69%Paying back the loan, plus the lender’s interest. Early on, most of it is interest.Property tax$427 18%Paid to your town, schools and county. Lenders usually collect it monthly in an escrow account.Homeowners insurance$177 8%Protects the home and your things. Lenders require it, and usually collect it with the payment.Mortgage insurance$111 5%Protects the lender when you put less than 20% down (PMI on conventional loans, MIP on FHA).

Compare your loan options

The same $250,000 home with different loans. A bigger down payment lowers the monthly cost and removes mortgage insurance at 20%; FHA allows lower credit scores; VA needs no down payment.

Loan optionMonthlyDown paymentCash to closeRate rangeConventional, 3% down$2,469$7,500$15,0007.24–⁠7.74%Conventional, 5% down$2,389$12,500$20,0007.24–⁠7.74%Conventional, 20% downMore cash than saved$2,001$50,000$57,5007.24–⁠7.74%FHA, 3.5% downBest fit$2,325$8,750$16,2506.61–⁠7.11%2026 loan limits for Cook and DuPage: conventional $832,750, FHA $541,287. Closing costs estimated at 3% of the price; FHA and VA fees are added to the loan.

Your next steps

1Pay down a car loan or card to lower your debt-to-income before you apply2Do not open new credit or finance furniture until after closing3Get pre-approved by two or three lenders in the same two weeks and compare their official Loan Estimates4Talk to a free HUD-approved housing counselor about IHDA down payment help5Keep at least two months of payments in savings after closing

Mistakes to avoidOpening new credit before closingA new card or car loan can change your rate or your approval right before closing.Emptying your savingsRepairs and moving costs come fast; keep a cushion after closing.Skipping the home inspectionA few hundred dollars can uncover thousands in repairs before you are committed.Questions to ask any lenderWhat rate and total fees would you charge, in an official Loan Estimate?Which loan type fits my credit and down payment best, and why?Do you work with IHDA down payment programs?How much cash will I need at closing, all in?

Are you ready to buy? Item by item

What lenders look atFor youPrice that fits your budgetClose$213,000 – $332,000Comfortable to stretch. Comfortable keeps your home payment near 28% of income and all debts near 36%. Stretch is the most lenders usually allow for this loan type, which leaves less room for savings and surprises.Monthly payment at $250,000Close$2,325 a monthFHA, 3.5% down. Loan $1,610, property tax $427, insurance $177, mortgage insurance $111, at about 6.61–7.11%.Cash to closeReady$16,250Down payment + closing costs. $8,750 down plus about $7,500 in closing costs (title, appraisal, lender fees and prepaid taxes and insurance). Your savings cover it.CreditReady680–739Rate and loan options. Your range qualifies for most loan types; 740 and up gets the best pricing.Debt-to-income at this priceClose39% of incomeLenders look for 36–45%. Your new home payment plus $450 of monthly debts, compared with your monthly income before taxes. Paying off a car or card lowers it fast.Savings left after closingReady$13,750 (5.9 months)Two months of payments is a good cushion. Money left for moving, repairs and the first surprises of owning. Many lenders like to see two months of payments in the bank.Work historyReady2 years or moreLenders look for 2 years. Steady work in the same field is what lenders look for.Down payment help (IHDA)CloseUp to $15,000Income and price limits apply. The Illinois Housing Development Authority offers AccessHome ($15,000, deferred, first-time buyers); Opening Doors ($9,000, forgiven over 5 years); Access Deferred ($7,500, deferred until you sell or refinance); Access Forgivable ($6,000, forgiven over 10 years); Access Repayable ($10,000, repaid monthly over 10 years). Only IHDA and its approved lenders can say if you qualify: ihda.org.Estimates from your answers, the national average 30-year rate and typical Illinois taxes, insurance and costs (last checked November 2026). Not a loan offer, pre-approval or rate quote.

First-time buyer roadmap

The usual path from budget to keys, with typical timing.

1. Set your budgetThis page. Decide the monthly payment you are comfortable with, not just the most you can borrow.Today2. Check your creditFree reports at AnnualCreditReport.com; our Credit Score Check estimates your range.1 day3. Get pre-approvedApply with two or three lenders in the same two weeks; compare their official Loan Estimates.1–2 weeks4. Shop for a homeWork with a buyer’s agent; stay inside your comfortable range.1–3 months5. Offer and inspectionEarnest money (often 1–3%) goes with your offer; a home inspection usually costs a few hundred dollars.1–2 weeks6. Appraisal and final approvalThe lender checks the home’s value and your paperwork; avoid new credit and job changes.2–4 weeks7. ClosingReview your Closing Disclosure 3 days before, bring certified funds, sign, get the keys.1 day

Help for first-time buyers in Illinois

Down payment help and free advice. Programs have income and price limits; only the program and its lenders decide who qualifies.

IHDA programs for a $250,000 homeAccessHome: up to $15,000deferred, first-time buyersOpening Doors: up to $9,000forgiven over 5 yearsAccess Deferred: up to $7,500deferred until you sell or refinanceAccess Forgivable: up to $6,000forgiven over 10 yearsAccess Repayable: up to $10,000repaid monthly over 10 yearsDetails and approved lenders: ihda.org. Free or low-cost help from a HUD-approved housing counselor: hud.gov (search “housing counseling”). Plain-English guides: consumerfinance.gov.

Home buying words to know

PITIPrincipal, interest, taxes and insurance: the four main pieces of a monthly mortgage payment.Mortgage insurance (PMI or MIP)Insurance that protects the lender when your down payment is under 20%. You pay for it monthly.Debt-to-income (DTI)Your monthly debt payments, including the new home payment, divided by your monthly income before taxes.EscrowAn account the lender uses to pay your property tax and insurance from your monthly payment.Closing costsFees to finish the purchase: lender fees, title insurance, appraisal, recording, and prepaid taxes and insurance.APR vs. interest rateThe rate is the cost of borrowing; the APR adds most fees, so it is the better number for comparing lenders.PointsAn upfront fee to lower your rate. One point costs 1% of the loan.Earnest moneyA deposit with your offer that shows you are serious; it goes toward your down payment at closing.

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How It Works

01Tell us about youIncomes, work, credit range and whether you have owned a home. No name, no SSN, nothing that identifies you.02Slide your numbersIncome, monthly debts, savings and the price you have in mind. Pick the town and the kind of home.03Get your budget and planOur calculator works out every number from this week’s rate; our AI explains them and writes your next steps.

Common Questions

How much house can I afford?

A common guide: keep your total home payment (loan, taxes, insurance, mortgage insurance and HOA) near 28% of your monthly income before taxes, and all your debt payments near 36%. Many lenders allow up to 43–50%, but that leaves less room for savings. This check works out both numbers for you.

How much house can I afford on $80,000 a year in Illinois?

At recent rates and typical Schaumburg-area property taxes, a household earning $80,000 with modest debts can usually afford about $185,000 to $205,000 comfortably, and up to roughly $280,000 to $350,000 as a stretch, depending on debts, savings, credit and loan type. Property taxes in the northwest suburbs are often 2% or more of the home’s value a year, which lowers the price a payment will buy.

How much do I need for a down payment?

Less than many people think: 3% with some conventional loans for first-time buyers, 3.5% with FHA (credit 580 or higher), and nothing with a VA loan. Putting 20% down removes mortgage insurance. Plan on another 2–5% of the price for closing costs.

What is PMI?

Private mortgage insurance protects the lender when you put less than 20% down on a conventional loan. It is added to your monthly payment and can be removed once you reach 20% equity. FHA loans have their own mortgage insurance (MIP) with an upfront and a monthly part.

FHA or conventional: which is better?

FHA allows lower credit scores and costs less with a score under about 700, but its mortgage insurance usually lasts the life of the loan. Conventional loans are often cheaper with good credit and let you drop PMI later. This check compares both for your numbers.

What help is there for first-time buyers in Illinois?

The Illinois Housing Development Authority (IHDA) offers down payment and closing cost help, from a few thousand dollars up to $15,000 for eligible first-time buyers, through approved lenders. Income and price limits apply. HUD-approved housing counselors give free or low-cost advice.

What credit score do I need to buy a house?

FHA loans start at 580 with 3.5% down (500–579 with 10% down); most conventional loans need 620 or more; the best rates usually go to 740 and up. Our free Credit Score Check estimates your range anonymously.

What are closing costs?

Fees to finish the purchase: lender fees, appraisal, title insurance, recording, and prepaid property tax and insurance. In Illinois they are often 2–5% of the price. Your lender lists them in the official Loan Estimate and Closing Disclosure.

Does this affect my credit or count as a pre-approval?

No. Nothing is checked or reported, and this is not a pre-qualification, pre-approval or loan offer. When you are ready, apply with two or three lenders in the same two weeks so the credit checks count as one, and compare their official Loan Estimates.

Is Schaumburg Marketplace a lender?

No. Schaumburg Marketplace is not a lender, mortgage broker or loan originator and does not offer loans, rates or approvals. This free tool is general education to help you plan.

Important: the Home Loan Check gives estimates based only on the answers you enter, the national average 30-year mortgage rate (Freddie Mac, via the Federal Reserve Bank of St. Louis), and typical Illinois property taxes, insurance and closing costs. It is not a loan offer, pre-qualification, pre-approval, rate quote, rate lock or the official Loan Estimate form. Actual rates, fees, mortgage insurance, taxes, insurance and loan limits are set by lenders, insurers, government agencies and taxing bodies and may differ. The explanations and action plan are written with AI (OpenAI) from your numbers and may contain mistakes.

Schaumburg Marketplace is not a lender, mortgage broker or loan originator and is not licensed under the Illinois Residential Mortgage License Act. We do not take applications, offer or arrange loans, or decide who qualifies. Down payment programs are run by the Illinois Housing Development Authority (IHDA) and others, which set their own rules and income and price limits. This is general educational information, not financial, legal or tax advice, and it is for your own use only; do not use it to decide anyone else’s eligibility for credit or housing. The tool is for adults 18 and older. We work to keep this information accurate but make no warranty; use it at your own risk. Full terms: schaumburgmarketplace.net/disclaimers (section 27).

Your privacy: we never ask for your name, Social Security number, date of birth, address, ZIP code, marital status or phone number. Your answers stay on your device, except that to write your plan we send your anonymous answers and our numbers to OpenAI and keep a copy of the plan for those answers. If you ask us to email your budget, we keep your email address and those results to send them. Freddie Mac is a trademark of its owner; Schaumburg Marketplace is not affiliated with any lender or agency named here.

Money MattersGet ready to buyCheck your credit range first, then the home insurance you will need. Both are free, anonymous and take about two minutes.Credit Score Check →Home Insurance Check →